Meme coins saw a significant drop on June 7, similar to the crash in GameStop’s stock. While not as drastic as GameStop’s decline, major meme coins like Pepe, Dogewheat, Floki, and Bonk all fell by more than 10%.
The volatility of the market was evident as GameStop’s stock surged 47% the day before a live broadcast by Keith Gill, also known as ‘Roaring Kitty,’ who had been a driving force behind the GameStop rally. However, the stock price dropped by as much as 40% after the broadcast, which didn’t offer any new information. This unpredictability also affected meme coins that had been influenced by the meme stock rally, leading to their decline.
According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu had fallen by 7.56% and 6.23%, respectively. Pepe dropped 10.82%, Dogewheat 12.47%, Floki 12.93%, and Bonk 11.35%. Analysts described the situation as a “shakeout” amid an uptrend, with a clear support test for Solana, the underlying platform of major meme coins.
The downturn in the crypto market led to a rotation of capital into stablecoins or less risky bets, resulting in a decline of meme coins. The social volume of these altcoins also dropped by more than 20% in the last 24 hours, reflecting the negative sentiment alongside the price decline.
Gill’s resurgence on social media after more than three years reignited excitement and frequent trading halts in GameStop trading on traditional exchanges, leading to a surge in meme coin activity.
Gill’s GME portfolio is nearing the $1 billion mark, sparking significant gains in GameStop-themed meme coins. Notable standouts include the Solana-based Roaring Kitty (KITTY) coin, which soared nearly 300% to approximately $0.0344, and the Ethereum-based Roaring Kitty (ROAR) coin, which jumped over 126% in the same period.
The rapid rise of these parody meme coins highlights the intense crypto FOMO (Fear Of Missing Out) sweeping the market. The meme coin industry has already achieved a market cap of nearly $57.6 billion, with a daily trading volume surpassing $9 billion.
The lack of action from the US SEC against Gill suggests that the meme coin frenzy could spark a new altseason. Meanwhile, Bitcoin’s dominance seems to be reversing, with significant gains in Ethereum (ETH) and BNB, indicating a potential shift in the market.
Renowned digital artist Beeple, known for his record-breaking $69.3 million NFT sale, has stirred controversy with his latest artwork, “CURIOSITY KILLED THE CAT,” which some view as a commentary on the risks associated with the hype and speculation surrounding meme stocks and cryptocurrencies.
There is heightened concern about the potential impact of the provocative imagery on GameStop’s already volatile stock price. On the other hand, some experts suggest that Roaring Kitty’s recent return could signal an oncoming meme coin supercycle.